Dynamic relationship between tax reputation, digital transformation, and corporate tax compliance in financial markets

Cheng Cai, Lianjie Zhou and Dongshuang Liu

International Review of Financial Analysis, 2025, vol. 104, issue PA

Abstract: Based on a dataset of non-financial A-share listed companies in China from 2015 to 2022, this study conducts an in-depth analysis of the dynamic relationship between tax reputation and digital transformation in shaping corporate tax compliance behavior. The findings reveal that both enhanced tax reputation and advancements in digital transformation significantly and positively influence corporate tax compliance. Moreover, company size emerges as a critical moderating factor, affecting not only the strength of the relationship between digital transformation and tax compliance but also demonstrating a threshold effect. Specifically, the impact of digital transformation on tax compliance varies significantly across companies of different sizes. These differences are evident in whether companies are audited by the Big Four accounting firms and are particularly pronounced between high-tech and non-high-tech industries. Notably, companies audited by the Big Four and those operating in the high-tech sector show greater improvements in tax compliance during the digital transformation process.

Keywords: Tax reputation; Digital transformation; Corporate tax compliance; Company size (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S105752192500345X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:104:y:2025:i:pa:s105752192500345x

DOI: 10.1016/j.irfa.2025.104258

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().